Profits at the Ardagh glassmaking group have fallen dramatically, largely due to losses at the Ringsend plant in Dublin and negative changes in the sterling-euro exchange rate.

Pre-tax profits fell to €2.4 million last year from €8.9 million and the final dividend has been cut from 5.7 cents to two cents per share to release cash to pay for the Ringsend closure.

Turnover last year fell more than €15 million to €304 million, with the change in exchange rates and lower sales from Ringsend accounting for €10 million of the fall in sales. Operating profits fell from €26.2 million to €11.3 million.

Again exchange rates and the deterioration in the Irish business accounted for €7 million of the decline while margins in the UK, which accounts for the bulk of Ardagh's business, were slightly lower as a result of overcapacity.

While the Irish operations are now destined for closure because major customers would not commit themselves to sufficient volumes at economic prices, the situation in the UK is improving.

The Rockware plants are trading in line with a budget that anticipates improved profits in the current year. "Capacity is fully utilised and modest price improvements are being achieved," the firm stated.

Ardagh also said a final decision on the acquisition of the Consumers Packaging glass operation in Italy would be taken "in the near future".

The Italian firm supplies bottles to a major Italian brewer and Ardagh has already said the acquisition will cost €3.07 million.